Sheths seek white knight in Mahindras and Tatas
Mumbai: In their bid to fight the hostile bid being mounted by the Delhi-based, Dalmia group, it is understood that the Sheth-family controlled, Gesco Corporation, is seeking the help of large industrial groups like the Mahindras and the Tatas to act as white knights. These groups already have interests in real estate and property development business.

However, according to reports appearing in the Economic Times, the negotiations are still at a preliminary stage and none of the large industrial groups has so far volunteered to wear the armour of a white knight.

Under the Sebi imposed deadline, the Sheth family is required to make an offer to counter the open offer of the Dalmia group before November 10. The Dalmia group’s open offer for the acquisition of 45 per cent equity capital of Gesco Corp at Rs 27 a share opens on November 24.

According to industry sources, with the family holding in Gesco Corporation being spread across various strands of the family tree, it might be difficult to get all members of the family to raise the necessary funds to stave off the hostile bidder.

The industry sources say that the family might rather use their limited resources to shore up their holding in flagship company, Great Eastern Shipping, which is also considered vulnerable to takeover threats. The Sheths have limited holding of around 13 per cent in GE Shipping.
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